The official opposition Democratic Alliance (DA) has welcomed Communications Minister Ivy Matsepe-Casaburri’s overhaul of the telecommunications sector by loosening the grip of the current fixed line monopoly, Telkom.
Responding to her move on Friday, described as “a Big Bang” in certain media, shadow communications minister Dene Smuts said: “The Democratic Alliance has long urged Matsepe-Casaburri to use the powers given to her under the Telecommunications Act to liberalise the telecommunications field by gazetting dates for voice over internet protocol, resale, self-provisioning and other forms of competition. She has now done so and we express our delight and relief.”
One of the by-products of her action will be that value added network service providers will be able to carry voice over the internet which will mean that from next year consumers will be able to make cheaper international calls.
Vodacom, MTN and Cell C will also be able to lease their network from providers other than Telkom.
Smuts noted that it was not clear when the second national operator (SNO) — which will be in competition to Telkom — will get off the ground. Matsepe-Casaburri has said September 17 will be the deadline for the licensing announcement.
“Telkom’s stranglehold on the internet and value-added network services has been holding South Africa back,” said Smuts in a statement.
“The artificial constraints on telecommunications and IT development have been all the more frustrating considering that government is on the point of tabling a convergence law which will sweep away the old licensing frameworks,” said Smuts.
“Technology always runs ahead of the law, in our case the law has been used for far too long to protect the dominant incumbent, Telkom,” she said.
Matsepe-Casaburri said on Thursday that “as from 1 February 2005 mobile operators may utilise any fixed lines that may be required for the provision of the service including fixed lines made available by Telkom or any other person providing a public switched telecommunication service”.
The Communications Department’s senior general manager of telecommunications policy, Colonel Pakamile Pongwana, noted that there were more than 40 companies in South Africa which provided internal fixed line service — in addition to the fixed line service which will be provided by the SNO.
The minister also announced that from February 1 investors could apply for a licence to provide public pay phone services in any area of the South Africa. – I-Net Bridge